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Completion Time:  20 min
Basics of Alternative Retirement Plans

There are Many Kinds of Retirement Plans

Retirement systems can offer a variety of paths to income security. The 20th century saw the evolution and maturing of different concepts, from the spread of traditional pension plans during the first half of the century to the emergence of defined contribution plans in the second half. During that time, and over the last few decades in particular, we’ve learned a lot about best practices for crafting plans that offer teachers a secure retirement in the 21st century.

This module introduces the basics of four alternatives to the traditional pension:

  • Guaranteed return plans
  • Defined contribution plans
  • Hybrid retirement plans
  • Supplemental retirement plans

Retirement plans do not need to fit exactly into these fixed molds. There are lots of ways to mix and match elements depending on the objective of the employer and how states want to handle trade-offs related to risk. The traditional pension design may work well for you or some of your colleagues, but if it doesn’t, one of these alternatives could provide more robust retirement income.

There are Many Different Kinds of Retirement Plan Designs for Teachers Across the U.S.

Source: Equable